Reliance Q2 sales rise 27%, beat estimates on record shipments

Overview

• U.S. metals service center's Q2 sales rose 26.5% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 climbed 42% yr/yr, beating analyst expectations

• Growth driven by record tons sold and U.S. border wall project contribution

Outlook

• Reliance expects Q3 2026 non-GAAP EPS of $6.40 to $6.60

• Company anticipates Q3 2026 tons sold down 2%-4% sequentially, excluding border wall project

• Reliance sees Q3 2026 average selling price per ton flat to up 2% sequentially

Result Drivers

• RECORD SHIPMENTS - Record tons sold, up 7% sequentially and 10.8% yr/yr, outpacing industry trends, supported Q2 results

• BORDER WALL PROJECT - U.S. border wall contract contributed $0.41 per share to earnings, more than doubling expectations, and boosted shipment volume

• STRONG PRICING - Higher average selling prices, especially for carbon steel and aluminum, supported revenue growth

Company press release: ID:nGNXb0xVtK

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the iron steel peer group is "buy."

• Wall Street's median 12-month price target for Reliance Inc is $379.50, about 1% below its July 21 closing price of $383.42

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• July 20 - Steel Dynamics Q2 results beat estimates on record shipments, steel price gains

• July 21 - Mueller Industries Q2 sales rise on higher volumes and prices

• July 20 - Trump says he signed proclamation to adjust tariffs on aluminum imports

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)